20.08.202506:06:46UTC+00German Producer Prices Drop the Most in 13 Months

In July 2025, Germany experienced a 1.5% decline in producer prices compared to the previous year, extending the decline seen in June which was recorded at 1.3%. This drop exceeded the market's expectation of a 1.3% fall. Notably, this represents the fifth consecutive monthly decrease and is identified as the most significant annual decline since June 2024. The primary factor contributing to this trend was the reduction in energy costs, which saw a significant decrease of 6.8%. Within the energy sector, notable declines were observed in several areas: natural gas dropped by 8.6%, mineral oil products by 7.9%, electricity by 7.8%, heating oil by 5.7%, and motor fuel by 3.9%. In contrast, prices for intermediate goods decreased by 0.9%. However, there was a rise in prices for non-durable consumer goods (up by 3.5%), durable consumer goods (increased by 1.9%), and capital goods (up by 1.8%). Excluding energy, producer prices saw an increase of 1.0%, which followed a 1.3% rise in June. On a monthly basis, the producer price index saw an unexpected decline of 0.1% in July, reversing the slight increase observed in June and falling short of forecasts that anticipated a 0.1% increase.